Authorities Warn of "Pig Butchering" Crypto Scams, FBI Fraud Steps, and SEC on Relationship Scams Causing Billions Lost

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Published Apr 16, 2025, 07:06 PM

Authorities and cybersecurity experts have issued warnings about a rise in cryptocurrency-related investment scams that exploit unsuspecting investors through fake online trading platforms and unrealistic returns. A particularly deceptive tactic known as "pig butchering" involves scammers first gaining victims' trust, then showing fake profits before disappearing with all invested funds. The FBI outlined the typical progression of such fraud schemes, which includes selecting victims, building trust, pitching investments, initial and growing investments, and finally imposing taxes and fees before the scheme collapses. The U.S. Securities and Exchange Commission (SEC) highlighted relationship investment scams, where scammers initiate contact via text or direct message to form friendships and subsequently offer fraudulent investment opportunities, resulting in billions of dollars lost annually. Authorities urge the public to recognize red flags and report suspected fraud to prevent further victimization.

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#FBI #SEC

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Sources

investor.gov(2)ic3.gov

U.S. Securities and Exchange Commission

@SECGov

Relationship investment scams can start with a simple text or DM. Scammers try to form a friendship with you—before offering a phony investment opportunity. Once the bait is taken, they vanish, along w/ your money. Talk about a bad friend. Learn more: https://t.co/0p52dbDwzE https://t.co/5bzV1Jxnxo

U.S. Securities and Exchange Commission

@SECGov

Relationship investment scams can be devastating and cause investors to lose billions of dollars every year. Learn some of the red flags here: https://t.co/0p52dbDwzE https://t.co/CcuEWsGsuF

FBI Los Angeles

@FBILosAngeles

The road to Cryptocurrency Investment Fraud involves: 👉Selecting the Victim 👉The Building of Trust 👉The Pitch 👉The Initial Investment 👉The "Growing" Investment 👉Taxes, Fees, and the End of the Scheme Don't Be a Victim! Report fraud to https://t.co/WihvjM9xe8. #TechTuesday https://t.co/0pcvuxT70p

Story Timeline

2 days ago•Latest version

Authorities Warn of Cryptocurrency and Relationship Investment Scams; Retiree Loses 11,500 Euros, SEC Offers Educational Resources

3 days ago•Original version

Authorities Warn of "Pig Butchering" Crypto Scams, FBI Fraud Steps, and SEC on Relationship Scams Causing Billions Lost

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Authorities Warn of "Pig Butchering" Crypto Scams, FBI Fraud Steps, and SEC on Relationship Scams Causing Billions Lost

Related Prediction Markets

Trump eliminates capital gains tax on crypto before June?

Will FIFA launch a cryptocurrency before June?

Sources

Story Timeline

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